Business
AGM and Q1 2019 Trading Update
AGM and Q1 2019 Trading Update.
About this update from Hunting Plc
[{"type":"text","content":"\n \nRNS Number : 3963W Hunting PLC 17 April 2019 \n\n\n\n\n\nFor Immediate Release\n\n\n17 April 2019\n\n\n\n\n \n \n Hunting PLC\n \n(\"Hunting\" or \"the Company\" or \"the Group\")\n \nAGM and Q1 2019 Trading Update\n \nHunting PLC (LSE:HTG), the international energy services group, will today be holding its Annual General Meeting commencing at 10.30a.m., and ahead of the meeting, issues a Q1 2019 trading update.\n \nTrading Update\n \nOverall, the Group has started the year well reporting an underlying EBITDA in the period of approximately $35.0 million, which is in line with internal targets. The first quarter of 2019 saw a continuation of the level of revenues and profits reported in Q4 2018 with our US onshore completions focused businesses remaining busy, however, offshore focused operations continue to face slow and challenging markets, particularly in the Gulf of Mexico and North Sea. With cost saving measures established in earlier years within our international operating segments, together with some modest market improvements, segmental results are improving and are reporting reduced losses in comparison to prior periods, particularly in our European operations. \n \nHunting Titan has reported revenues in the quarter ahead of Q4 2018; however, margins have reduced during Q1 2019 as increased competition has been reported due to the industry working through excess inventories built up in late 2018. Initiatives implemented to address these market conditions include inventory reduction of lower technology conventional perforating guns and some price reductions of other products. These initiatives are not expected to be a feature for the remainder of the year as market share has been maintained and new technology and products continue to be introduced including the new H-2 short length perforating system which has been well received by customers. Further, the capacity expansion programmes underway within the business remain on schedule for completion by the end of the current quarter and will provide more efficient manufacturing on a lower cost base.\n \nIn the US, results are ahead of expectations, as the Group's business units benefit from improving demand particularly within onshore completions and capital equipment markets.\n \nIn Canada, extremely cold we...